The Volatility Index (VIX) is a tricky beast, but here’s at least one indicator that pre-Lehman levels of market complacency are back.
The VIX just hit a 16-month low today, basically wiping away the entire panic-driven run-up since Lehman went boom. If you’re getting bearish, the good news is that buying puts as protection for your current stocks could be getting cheaper due to less future potential volatility priced-in. It might be worth a look.
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See Also:
- Risk Is Dead — The VIX Is About To Hit A New Low
- The VIX Goes Schizophrenic
- The VIX ETF "VXX" Is Another Classic ETF Disaster